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# How to Fill Out Form 8949 for Crypto, Step by Step (2025 Returns)
- URL: https://zipmex.com/blog/how-to-fill-out-form-8949-for-crypto-step-by-step/
- Published: 2026-10-20T20:17:31.000Z
- Updated: 2026-10-25T00:46:12.000Z
- Description: Form 8949 for crypto: list each disposal, split short- and long-term, pick box G, H or I (J, K or L), and fix a wrong Form 1099-DA basis with code B.
- Author: ZIPMEX
- Tags: Crypto, #zipmex-newsroom

To report crypto on Form 8949 for tax year 2025, list every sale, swap or spend of a digital asset on its own row. Put assets held 1 year or less in Part I (short-term) and assets held more than 1 year in Part II (long-term). Check the digital asset box that matches your Form 1099-DA: G, H or I in Part I, or J, K or L in Part II. Then carry each box's totals to Schedule D. If the cost basis on a Form 1099-DA is wrong, keep the reported proceeds, enter code B in column (f) and correct the basis as the IRS instructions describe. Every rule below comes from the IRS's 2025 Form 8949 instructions and its digital asset guidance.

## What changed for 2025

- **New digital asset boxes.** The 2025 Form 8949 adds boxes G, H and I for short-term digital asset transactions and J, K and L for long-term ones. They mirror the older boxes A to F. The IRS instructions say: "Do not use box C to report short-term digital asset transactions."
- **Form 1099-DA starts.** The IRS says brokers "must report gross proceeds for transactions effected on or after Jan. 1, 2025" and "must report basis on certain transactions effected on or after Jan. 1, 2026."
- **Basis reporting covers only newer purchases.** Under the Form 1099-DA instructions, a digital asset counts as a covered security only if it was "acquired after 2025 for cash" in an account where the broker provided custody, and stayed there until it was sold. Most 2025 sales involve noncovered assets, so the broker does not have to report your basis. Brokers may report it voluntarily.
- **Wallet-by-wallet tracking.** From January 1, 2025, IRS guidance applies basis and identification rules separately to each wallet or account. Rev. Proc. 2024-28 gave a safe harbor for allocating unused basis across wallets as of that date.

## Step 1: Gather every disposal

You have to report every taxable transaction, "regardless of the amount or whether you receive a payee statement or information return" (IRS FAQ 42). Disposals include selling crypto for dollars, swapping one token for another, and paying for goods or services with crypto.

Moving crypto between your own wallets is generally "a non-taxable event." The exception is any units used or withheld to pay transaction costs (IRS FAQ 81).

For each disposal, collect:

- the asset name or symbol and the number of units
- the date acquired and the date sold
- the proceeds
- the cost basis, including acquisition fees

The instructions for column (a) say to add the transaction ID "if available."

Staking, mining and payments for work are income, not Form 8949 items. Report staking and mining on Schedule 1 (Form 1040), and independent-contractor payments on Schedule C. Rev. Rul. 2023-14 says staking rewards count as income at fair market value when you gain dominion and control over them. That value then becomes your basis when you later sell those units.

## Step 2: Work out basis and proceeds

- **Basis.** Basis is the acquisition cost, "including transaction fees, commissions, transfer taxes, and other acquisition costs" (Form 8949 instructions).
- **Selling fees.** Transaction costs allocable to a sale reduce the amount realized (IRS FAQ 65).
- **Token-for-token swaps.** In an exchange, transaction costs reduce the amount realized. They are not added to the basis of the asset you receive (IRS FAQ 68).
- **Unreported costs.** Selling expenses and digital asset transaction costs that the 1099-DA does not reflect go in column (g) as a negative number with code E.

Gain or loss in column (h) is column (d) proceeds minus column (e) basis, adjusted by any amount in column (g).

## Step 3: Decide which units you sold

If you don't identify specific units, the default rule treats the earliest-acquired units in that wallet or account as sold first (IRS FAQs 86, 87 and 92). For units held at a broker, the order follows acquisition dates, "without regard to the date or dates on which you transferred the units to the broker."

You can choose specific identification instead:

- **Self-custody wallets.** Identify the units on your own books and records by the time of the sale (FAQ 82).
- **Units held at a broker.** Notice 2025-7 let you record the identification, or a standing order, in your own records during 2025\. Notice 2026-20 (IRB 2026-15) extends that relief to sales through December 31, 2026\. After the relief ends, the identification has to be given to the broker by the time of sale, using the broker's identifiers (FAQ 85).

Because of this relief, the dates and basis a broker reports can differ from your own records.

## Which Form 8949 box does your crypto row use?

Answer a few questions about one disposal to find its Form 8949 part and digital asset box for 2025 returns.

1. What happened to the crypto in this row?

  - I sold it, swapped it for another token, or spent it on goods or services → [next question](#ix-n%5Fhold)
  - I moved it between my own wallets → [Generally not a Form 8949 row](#ix-o%5Ftransfer)
  - I received it as staking or mining rewards or as payment for work → [Income, not a Form 8949 row](#ix-o%5Fincome)
2. How long did you hold the units? The holding period starts the day after you acquired them.

  - 1 year or less → [next question](#ix-n%5Fform%5Fshort)
  - More than 1 year → [next question](#ix-n%5Fform%5Flong)
3. Did you receive a Form 1099-DA (or 1099-B) for this short-term disposal?

  - Yes, a Form 1099-DA → [next question](#ix-n%5Fbasis%5Fshort)
  - No form, for example a self-custody or peer-to-peer disposal → [Part I, box I](#ix-o%5Fi)
4. Did you receive a Form 1099-DA (or 1099-B) for this long-term disposal?

  - Yes, a Form 1099-DA → [next question](#ix-n%5Fbasis%5Flong)
  - No form, for example a self-custody or peer-to-peer disposal → [Part II, box L](#ix-o%5Fl)
5. Does the Form 1099-DA show basis was reported to the IRS (box 2 checked)?

  - Yes, basis was reported → [Part I, box G](#ix-o%5Fg)
  - No, basis was not reported (the likely case for most 2025 sales) → [Part I, box H](#ix-o%5Fh)
6. Does the Form 1099-DA show basis was reported to the IRS (box 2 checked)?

  - Yes, basis was reported → [Part II, box J](#ix-o%5Fj)
  - No, basis was not reported (the likely case for most 2025 sales) → [Part II, box K](#ix-o%5Fk)

**Generally not a Form 8949 row**

Moving crypto between your own wallets is generally a non-taxable event. The exception is any units used or withheld to pay transaction costs.

**Income, not a Form 8949 row**

Report staking and mining on Schedule 1 (Form 1040) and independent-contractor payments on Schedule C. The fair market value counted as income becomes your basis when you later sell those units.

**Part I, box G**

Short-term, basis reported to the IRS. If no adjustments are needed and the Ordinary box isn't checked, the row can go straight to Schedule D line 1a. If the basis is wrong, enter it as reported in column (e), code B in column (f) and the correction in column (g). Box G totals go on Schedule D line 1b.

**Part I, box H**

Short-term, basis not reported to the IRS. If the basis on the 1099-DA is wrong, enter the correct basis in column (e), code B in column (f) and -0- in column (g).

**Part I, box I**

Short-term with no Form 1099-DA or 1099-B. Your own records set the dates, proceeds and basis. Do not use box C for short-term digital asset transactions.

**Part II, box J**

Long-term, basis reported to the IRS. If no adjustments are needed and the Ordinary box isn't checked, the row can go straight to Schedule D line 8a. If the basis is wrong, enter it as reported in column (e), code B in column (f) and the correction in column (g).

**Part II, box K**

Long-term, basis not reported to the IRS. If the basis on the 1099-DA is wrong, enter the correct basis in column (e), code B in column (f) and -0- in column (g). Box K totals go on Schedule D line 9.

**Part II, box L**

Long-term with no Form 1099-DA or 1099-B. Your own records set the dates, proceeds and basis.

This sorts one row into a part and box under the IRS's 2025 federal rules for individuals. It does not work out your gain, basis or which units you sold, and it is not tax advice.

> If you dispose of crypto-assets, such as selling them, trading them away, or using them to make a purchase, you should report your disposal on Form 8949.

coinledger.io · [Read the source](https://coinledger.io/blog/form-8949-for-cryptocurrency?ref=zipmex.com)

## Step 4: Sort short-term and long-term

The holding period starts the day after you acquire the asset (IRS FAQ 50). If it is 1 year or less, the row goes in Part I. If it is more than 1 year, the row goes in Part II.

## Step 5: Check the right box

| Your situation                              | Short-term (Part I) | Long-term (Part II) |
| ------------------------------------------- | ------------------- | ------------------- |
| Form 1099-DA, basis reported to the IRS     | G                   | J                   |
| Form 1099-DA, basis not reported to the IRS | H                   | K                   |
| No Form 1099-DA (or 1099-B) received        | I                   | L                   |

Use a separate Form 8949 page for each box you check. The Schedule D instructions treat a 1099-DA as basis-reported when its box 2 is checked. For most 2025 sales the broker did not have to report basis, so H or K is the likely box for 1099-DA rows. Self-custody and peer-to-peer disposals with no form go under I or L.

**Shortcut.** Some rows can skip Form 8949 and go straight to Schedule D line 1a (short-term) or 8a (long-term). That applies only when the 1099-DA shows basis was reported to the IRS, no adjustments are needed, and the Ordinary box isn't checked.

## Step 6: Fix a wrong basis on Form 1099-DA

Code B covers rows where "the basis shown in ... box 1g on Form 1099-DA is incorrect":

- **Box H or K rows:** enter the correct basis in column (e), code B in column (f) and -0- in column (g).
- **Box G or J rows:** enter the basis as reported in column (e), code B in column (f), and correct the error with an adjustment in column (g). Use the Worksheet for Basis Adjustments in Column (g).

Keep records "sufficient to establish the positions taken on tax returns" (IRS FAQ 46): purchase confirmations, bank statements and wallet histories.

## Step 7: Carry totals to Schedule D

Total columns (d), (e), (g) and (h) for each box. Totals for box A or G rows go on Schedule D line 1b, and totals for box E or K rows go on line 9\. The remaining boxes feed lines 2, 3, 8b and 10, as the Form 8949 and Schedule D instructions set out.

Net capital losses are deductible up to $3,000 a year, or $1,500 if married filing separately. Any excess carries forward. You also answer the digital asset question on Form 1040 "Yes" or "No."

## What to expect for 2026 returns

For sales on or after January 1, 2026, brokers must report basis for covered digital assets: ones bought for cash after 2025 in a custodial account and kept there. More rows will qualify for boxes G and J. Assets bought earlier, or transferred in from another wallet, stay noncovered. For those, your own records still set the basis.

Limitations: this covers federal rules for individuals as stated in IRS materials for tax year 2025\. It is not tax advice, so check the current instructions or a tax professional for your situation.

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